Joint Tax Committee Releases Report on Federal Excise Taxes

The Joint Committee on Taxation yesterday released Present Law and Background Information on Federal Excise Taxes (JCS-1-11). Here is the Introduction:

The Internal Revenue Code imposes numerous excise taxes on goods and services. In addition to excise taxes the primary purpose of which is revenue production, excise taxes also are imposed to promote adherence to other policies (e.g., penalty excise taxes). Many trust funds established by the Federal Government are financed with dedicated excise tax receipts. This document provides a description of present-law Federal excise taxes, and when applicable, background information on trust funds financed with excise tax revenues.

Revenues from certain Federal excise taxes are dedicated to trust funds (e.g., the Highway Trust Fund) for designated expenditure programs, and revenues from other excise taxes (e.g., alcoholic beverages) go to the General Fund for general purpose expenditures. The largest excise taxes in terms of revenue (for fiscal year 2009) are those for gasoline motor fuels ($25.1 billion), domestic cigarettes ($11.0 billion), diesel motor fuel ($8.5 billion), and domestic air ticket ($7.3 billion).

Part I of the document discusses excise taxes dedicated to trust funds. Part II discusses·General Fund excise taxes. Part III provides background information, projected excise tax receipts, and information on the projected fiscal status of various trust funds. Appendix A includes a summary rate schedule for the principal excise taxes that are presently imposed, and Appendix B provides background information on the expired Hazardous Substance Superfund taxes and related trust fund.